Friday, May 8, 2009

Late Rent Means Late Extra Mortgage Payment

This was a strange week at work. It started off extremely slow because our other office down south was closed for 2 days due to H1N1 (swine flu) precautions. That meant no phone calls or emails from them. By the end of the week I was very busy with new business. New business is good. But then tonight I was the last one in the office (very eerie) because everyone left early. It was up to me to hold down the fort. I guess it is better to be the last one there and leave at 5 rather than have to work over-time on a Friday.

In case you are wondering where my extra mortgage payment is for May, it is going to be late. My renters told me that their car was rear-ended and they are still negotiating with the at-fault driver's insurance company in order to get their expenses paid for. She offered to get a payday loan in order to pay the rent on the first of the month. Otherwise, she said, she could pay when she got her pay check on the 13th. Since I have enough money in the bank to cover the mortgage without the rent, I said she could pay me next Wednesday. I do not want her to get caught up in a vicious cycle of payday loan. Plus, would I rather she paid lots of interest to a payday loan company or a late fee to me? I'll take the late fee.

6 comments:

Over the Cubicle Wall said...

New business is good for business :)

I thought I was the last one at work today, but when I was walking out the door, a guy down the hall was walking in the door. It was past six, so I just kind of looked at him like he was crazy and said have a good weekend.

Sounds promising that your tenants offered to take a loan to pay you, but glad you didn't make them. Also good that you had enough buffer to make the payment on time.

Daizy said...

Maybe there is a secret society that works in your building at night!

I try to remember that my new tenants aren't horrible like the last ones. They deserve the benefit of the doubt.

Lizzie said...

I hope they are legit. It does sound okay & well done for not making them incurr extra costs.
Have a nice weekend.

Lizzie

Petunia said...

Do you have a HELOC type mortgage? Or do you mean that you will pay extra in June with May's rent? (and perhaps June's rent too)

Daizy said...

Hello Lizzie, I do hope I see that rent on Wednesday. I think I should get to take the whole year off from rental problems.

Daizy said...

Hi Petunia, I have a 30 year mortgage but it only has 8 years left because I have been paying extra. I try to pay at least $1,200 extra principle every month. If the tenants don't pay the rent I can only pay $400 extra. If they pay on Wed. I can pay the full $1,200 extra for May.